The King is Back: Burger King Returns to the NYSE
Burger King (NYSE: BKW), a fast food hamburger chain, began trading on the New York Stock Exchange once again on Wednesday.
Burger King last traded on a major exchange back in 2010, before it was taken private by 3G Capital. 3G Capital, Burger King's principal stockholder, received approximately $1.4 billion in cash in the public offering.
Still, 3G Capital retains a roughly 71 percent stake in Burger King Worldwide, making it the largest shareholder.
This might not be the best time for Burger King to return to the public markets. In the U.S., the economic situation remains uncertain. Europe's economic environment is shaky, and China's economy may be slowing.
As evidence, the world's largest fast food hamburger chain McDonald's (NYSE: MCD) reported that its global comparable sales rose only 3.3 percent in May, lower than analysts' estimates of 5.2 percent.
For other fast food chains, China and Japan have not been delivering. McDonald's Japanese same store sales (SSS) dropped 11% in May. In China, Yum! Brands (NYSE: YUM) has seen weakness at its KFC stores.
Analysts have not been kind to McDonald's in recent weeks. Goldman Sachs downgraded the company to “Neutral,” citing “too many headwinds,” and Bank of America lowered its price target on the burger giant.
Ultimately, time will tell how Burger King will perform on the open markets.
Burger King opened for trading at $14.50 per share, and then immediately spiked higher. On Wednesday afternoon, shares of Burger King were trading near $15.
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